Former Soviet Republics strive Customs Union

St Petersburg. On the initiative of the Russian Prime Minister Vladimir Putin, eight former Soviet Republics agreed on a joint Customs Union in St Petersburg, late on Tuesday evening.

A framework on monetary policy as well as coordination of rail travel are included in the plans, was reported in the Russian media on Wednesday. The abolition of import and export duties for various goods are also planned.

This was agreed in principle between the Prime Ministers of Russia, Ukraine, Belarus, Kazakhstan, Kyrgystan, Moldova and Tajikistan. This agreement marks a new basis for trade and economic relations within the Commonwealth of independent States, said Putin.

He regretted that a similar, already agreed document from 1994 had never come into force. We can only imagine the pace of increase in trade, if we would have had the Customs Union, emphasized the former Kremlin boss. The three CIS members, Azerbaijan, Turkmenistan and Uzbekistan will decide by the end of the year on possibly joining the Union. Putin wanted to advertise the Customs Union between Russia, Belarus and Kazakhstan, initiated by him, on Wednesday. Recently he had encouraged the former Soviet Republics to create a joint Eurasian Union.

Recreating the Soviet Union, whose collapse he once considered as the greatest geopolitical catastrophe of the 20th century is however not planned, he emphasized. Putin will return to the Kremlin in 2012.

Previously Putin had suggested an economic area stretching from Lisbon to Vladivostok. The project was met with skepticism in the West. The German government had stressed that first of all Russia has to join the World Trade Organization WTO. For years the membership has been delayed.